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prepay I.O. terminology

E

EvanHush

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does anyone have term language they can share re: making a prepay to a publisher where the amount paid backs out to equals amount in revenue, customer purchases? It's basically an affiliate arrangement prepaid. purpose of this is to entice a publisher to change their model from their model of media buy to affiliate deal with all monies paid in advance.

I'm writing an IO and need some verbiage surrounding this.

Thank you so much!

Evan
 
In the world of brick and mortar field sales this is called a 'draw against commission'

You get paid $600 a week and each month there is a settlement.
month 1 $2,400 Draw $1,400 Commission = ($1,000) carry over
month 2 $2,400 Draw $1,200 Commission = ($2,200) carry over
month 3 $2,400 Draw $3,400 Commission = ($1,200) carry over
  • month 4 $2,400 Draw $2,800 Commission = ($800) carry over
  • month 4 $2,400 Draw $800 Commission = ($3,200) carry over FIRED!
What the exact ratio Advance : Actual Investment and the operating terms are for you to define in accordance with your business expectations.

So advance and payout on a CPA deal would make sense.
 
Graybeard said:
In the world of brick and mortar field sales this is called a 'draw against commission'
Click to expand...

YEP! I did this with many of our sales people in various businesses. However, while this is common among commission based employments, it is not common among commissioned independent contractors (far more risky). Back in the 70' in the car business, prospective sales people would ask for "a draw, a demo, and a day off" before reporting to their first day work. :rofl
 
Like I said it is a model.

You have;
Number of referrals based on the traffic.
If am buying media --why the hell would I spend $500 (or more) a day on your unproven performance? <<sword cuts both ways.

There is no transparency in this.
If I can't see your real books and server logs --the equity markets (or an insured bank account) are a much safer place for my money.

I cut people off when I send 1,000 referrals with no tangible results.
I do that with cheap, but filtered RTB traffic, as a test --I want to see some positive results --before I spend any real money.

This is just the inverse --if you believe in your product --put your money where your mouth is
 
MI
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